“The capex of Rs 65 crore was done from internal generation to enhance DI pipe capacity by 50 per cent to help boost revenue,” company officials told PTI.
The company was focusing at DI pipe segment as challenges for the pig iron segment to continue, it’s Chairman Kousik Chatterjee had said recently at the AGM.
The structural cost improvement projects of setting up a new coke plant, captive power plant and blast furnace modernisation along with structural changes in the organisation in terms of integrated value chain from iron ore to DI pipes are currently underway in various stages.
These projects are expected to improve the Company’s competitive position in the future,” Managing Director Sanjiv Paul said.
“The Company has added a fifth casting machine and a third finishing line that will increase the volume of DI pipes by 50 per cent on a fully ramped up capacity. The newly commissioned facility will enhance the volume of smaller diameter pipes which gives higher realisation in the market,” he added.
Meanwhile, the company had reported consolidated net profit of Rs 34.44 crore for the FY17 first quarter ended June, a rise in 25 per cent over corresponding period profit of last year of Rs 27. 43 crore.
However, sales were marginally lower to Rs 333.20 crore against Q1 of FY 16 registering Rs 338.58 crore.